Flailing.

From (ugh) the LATimes:

On an earnings conference call with analysts Wednesday, Hastings said Netflix now has no plans to spend any marketing dollars on its DVD-by-mail service, which lost 2.76 million subscribers during the last three months of 2011. 

"We expect DVD subscribers to decline each quarter forever," he said. 

When the Qwikster plans were announced, Netflix also said it would add video games to its DVD-by-mail business. But Hastings said the company has given up on that plan as well.

This is Hulu's chance.  Netflix is flailing around like a dying fish and killing itself.  If Hulu were to add to its movie library in addition to its phenomenal TV Shows library, I would drop Netflix in a heartbeat. I just wish that Hulu was available on the Apple TV.

Are you listening, Apple?

Flailing

From Fox News:

Netflix said Monday it has killed its plans to turn its DVD service into a separate business named "Qwikster." 

Netflix CEO Reed Hastings revealed the news via a blog post, reversing a decision the firm announced via a blog post three weeks ago.

While Netflix had to use some strained logic to explain its decision to split the businesses last month, this one was straightforward -- it was not going to force customers to use two different services to rent DVDs and stream video, because customers hated that idea.

There are two prudent courses of action here:


1. CEO Reed Hastings needs to be fired.  Immediately.  He looks like a buffoon and he's effectively lost all credibility.  His actions have seriously wounded - if not killed - Netflix and caused quite a bit of doubt about the company's long-term viability.


2.  Sell!  Sell!  Sell!!!

Qwik...what????

From AppleInsider:

Netflix CEO Reed Hastings sent a letter to subscribers on Monday, admitting he "messed up" and announcing that it would spin off its DVD and Blu-ray-based mailing business as a new service dubbed "Qwikster." 

The company's changes come in response to a subscriber backlash that was spurred by higher prices for rentals of physical DVDs. Hastings said the pricing for combined streaming, via Netflix, and mailed rentals, from Qwikster, will remain the same as it is currently.

Too little, too late.  And a stupid name, to boot. Way to go, Netflix.